Too Bad…. Second Quarter Performance Turns Out Not As Good as Expected

Investors waiting in vain for the positive performance of listed companies in the second quarter. Performance of listed companies in the second quarter was not bad, although not as its bombastic expectations. Fortunately the market optimism is driven by a cabinet reshuffle and the passing of tax amnesty.

In the energy sector, Bukit Asam Tbk (PTBA)’s profit fell 10% due to coal prices and increased operating expenses. Management still expects its performance to level with last year. Perusahaan Gas Negara (PGN) lowered its gas sales growth target this year due to a drop in demand from the State Electricity Company (PLN).

Even in the infrastructure sector that is expected to boost market performance, the good news is not heard. Waskita Karya (WSKT) was forced to revise its profit targets because they do not want to include the sale of subsidiaries into profit. Adhi Karya (ADHI) has reached the target of 36% contract, noting a decrease in revenue and earnings.

Also in the property sector, with different variants of its markets, weakened. The average landed residential developers had decreased performance. Likewise, the industrial area developers. However, they remain confident of achieving this year target thanks to the repatriation funds. The only property that is still growing well is the high-rise residential developers such as PP Property (PPRO).

Moreover, the banking sector had to be careful their NPLs. Bank Mandiri (BMRI)’s net profit is expected to be lower because of its provisions. Bank BCA (BBCA), although keep optimistic in raising its corporate loan, but also remain wary of rising credit risks. Likewise in Bank Bukopin (BBKP). Only Bank Jabar Banten (BJBR) reported its NPL to be down. BJBR also estimated its NPL to continue to fall with the disbursement of insurance claims and the sale of the collateral.

Fortunately there are also several companies that give encouragement to the market such as Semen Indonesia (SMGR) that will boost its regional sales to balance the decline in revenue and profits. Sri Rejeki Isman (SRIL) will explore garment exports to three European countries even though domestic demand is still able to generate earnings.